AT&T to Streamline Company Organization

Published 8:00 pm, Tuesday, April 8, 2003

AT&T Corp., seeking to expedite its decision-making process, Wednesday said it began streamlining its organizational structure, which will result in some job changes and losses.

The company declined to say how many jobs would be lost but that it doesn't expect to incur any charges from the streamlining.

AT&T said it's still assessing the amount of money it will save from the changes.

This effort is separate from AT&T's announcement in January that it was cutting 3,500 jobs, primarily at its business-services division.

AT&T said the streamlining effort reflects its transformation from its previous holding-company structure to a more customer- and market-focused operating model following the spin-off of AT&T Broadband in November and the earlier spin-off of AT&T Wireless in July 2001.

AT&T is centralizing its major retail channels under one sales organization and integrating all product management segments into a single organization.

AT&T named Chris Rooney head of the sales organization. Rooney, who had been president of AT&T Government Solutions, replaces Ken Sichau, who is retiring after 17 years with the company.

Reed Harrison will lead Network Engineering and Operations, replacing Frank Ianna, who also plans to retire. Harrison led network engineering, maintenance, and field operations for AT&T's local, long distance and global networks and products.

Shares of the Bedminster-based company closed at $14.67, down 44 cents, or 3 percent, on the New York Stock Exchange.